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#cfa-level-1 #reading-22-financial-statement-analysis-intro
Analysts must understand reporting choices in order to make appropriate adjustments when comparing companies’ financial positions and performance.
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3.1.5. Financial Notes and Supplementary Schedules
ach year’s expense is determined. Two companies may acquire similar equipment but use different methods and assumptions to record the expense over time. An analyst’s ability to compare the companies’ performance is hindered by the difference. <span>Analysts must understand reporting choices in order to make appropriate adjustments when comparing companies’ financial positions and performance. A company’s significant accounting choices (policies, methods, and estimates) must be discussed in the notes to the financial statements. For example, a note containing a s


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